CSX, a large freight railroad, said on Monday that it had replaced its chief executive, Joe Hinrichs, after an activist shareholder pressed for a leadership change.
CSX said it appointed Steve Angel, a former chief executive of Linde, an industrial gas company, as its new leader. He succeeds Mr. Hinrichs, a former Ford Motor executive who led CSX for three years.
Ancora Holdings, an activist investor, had pressed CSX to consider a merger. In a news release on Monday, it said it expected the board and Mr. Angel to be far more proactive when “identifying a willing partner to merge with.”
Two other large freight railroads, Union Pacific and Norfolk Southern, announced a plan to merge in July to create the United States’ first coast-to-coast freight network under a single company. After the proposed tie up was announced, speculation grew that CSX might combine with BNSF, another large freight railroad.
But BNSF, owned by Warren Buffett’s Berkshire Hathaway, has not made an offer for CSX, and Mr. Buffett told CNBC last month that he was not working on a bid for the railroad.
The CSX board seemed to hint on Monday that Mr. Angel’s appointment was part of an effort to take merging more seriously. John Zillmer, the chairman of the CSX board, said the board was “laser-focused on advancing CSX’s strategic priorities and maximizing shareholder value.”
Operations at CSX were in recent months hampered by the closing of a crucial tunnel in Baltimore and by severe hurricane damage to its network. But the tunnel work was completed this month, allowing taller trains to travel through, and analysts said CSX’s performance was improving.
“They have real momentum,” said Tony Hatch, a freight rail analyst.
CSX did not make Mr. Angel available for an interview. Mr. Hinrichs did not respond to a request for comment. On his LinkedIn page, Mr. Hinrichs said CSX had performed well for most of his tenure. “With the major projects now opening back up, there is tremendous opportunity to continue leading and improving,” he wrote.
CSX’s stock was up 4.7 percent on Monday afternoon.
Peter Eavis reports on the business of moving stuff around the world.
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